Vertical And Horizontal Competition And Cooperation In Supply Chain System

Seven various variants of vertical and horizontal competition and cooperation of supply chain system participants are investigated. Best variants from the point of view of the participants themselves (their profit) ‒ integration of the whole system ‒ and consumers (volumes of products on the market) ‒ full vertically integrated supply chains ‒ by comparison of the characteristics of the optimal and equilibrium states of this system are determined. Moreover, it is easier to resist the competition than to be included in the optimal plan. The worst results ‒ not only in terms of output but also in aggregate profits ‒ are the horizontal integration of transport companies that can negotiate tariffs. At the same time, the corresponding horizontal integration of producers does not save the situation, but on the contrary, makes it stable worst of all possible.